In this editorial the author discusses the moral hazard that arises from the 2008 government bailout of the Bear Stearns investment bank. The author notes that Republican Party senator John Thune of South Dakota dismissed notions that the unemployed should have...
请在下面的文本框内输入文字,然后点击开始翻译按钮进行翻译,如果您看不到结果,请重新翻译!Private markets cannot offset the moral hazard — lowered incentives to save — that arises from a social commitment to assure basic income under specified contingencies选择...
suppose a person takes out a loan from a bank to start a business. After they receive the credit, they may say their business failed—although it was profitable—to get a bailout or tax write-off. This purposeful behavior is known as an ex-post moral hazard.3...
In an insurance context, moral hazard is sometimes distinguished from a closely related idea known as "morale hazard." Both terms describe changes in a party's behavior after they have obtained insurance. However, moral hazard refers to conscious risk-taking that the party might engage in ...
Figure 4.1 illustrates the moral hazard problem that arises from the financial safety net. D-D represents banks' demand for deposits, while S-S is the supply of deposits by customers in a competitive deposit market without insurance. Banks that engage in greater risk taking are able to attract...
Moral hazard refers to the situation that arises when an individual has the chance to take advantage of a deal or situation, knowing that all the risks
This paper studies how a lender's credit insurance activities affect a sovereign borrower in an environment with moral hazard and debt renegotiation. The moral hazard problem arises from the assumption of private information where the lender cannot observe if the sovereign invested or consumed the bor...
In insurance theory, moral hazard is the name given to the increased risk of immoral behavior, and thus a negative outcome (“hazard”), because the person who caused the problem doesn’t suffer the full (or any) consequences, or may actually benefit.Such a concern typically arises in the...
moral hazard.following the analysis of the moral hazard gaming,the article suggested that the moral hazard should be on guard from two large aspects,they are to destroy the conditions of the moral hazard gaming and to interfere the processes of the moral hazard gaming,specific aspects are to ...
Section 3 explains the institutional setting of sanitation services in Brazil and develops the reasons why a moral hazard issue exists between the governor and mayors. A simple theoretical model of the role of political alignment in sewage treatment provision is provided in Section 4. Section 5 ...